Logo
get started

Want to Start Selling on Amazon? Learn How Much It Costs And What You Need To Get Started

img

If you’re looking to take your business to the next level, Amazon is the place to do it. With over 300 million active customers, Amazon is the world’s largest e-commerce platform and offers sellers some of the best opportunities in online retail.

But before you start selling on Amazon, it’s important to know a few things. What does it cost to become an Amazon seller? What do you need to know before you start? In this post, we’ll cover all the details about selling on Amazon, so you can make an informed decision about whether it’s the right choice for you. We’ll discuss the different fees, selling plans, and what you need to do to get started. Let’s dive in!

If you are ready to take your business to the next level and start selling on Amazon, you will need to understand the costs and requirements associated with setting up an Amazon seller account. This blog post will provide an overview of what is required, what it costs, and the potential risks and rewards of selling on Amazon. 

What Does It Cost To Start Selling On Amazon? 

Monthly Subscription Fees

When registering for an Amazon seller account, there are several fees you might run into. First, there’s a monthly subscription fee. Amazon currently offers two selling plans: Professional and Individual. The Professional plan costs $39.99 per month and includes all the features and resources you need to scale your business. These include permission to sell in multiple categories, the ability to attract shoppers with on-site advertising, and access to a variety of feeds, spreadsheets, and reports to track your business’s progress. The Individual plan has no monthly fee and instead only charges $0.99 per sale. However, this plan does not contain any of these useful seller features.

Referral Fees

In addition to the monthly fees, Amazon charges referral fees on all products sold. These fees vary depending on the category of the item you’re selling. On the higher end, Amazon device accessories have a 45% referral fee, while video game consoles only have an 8% referral fee. The average referral fee is around 15%. Most categories also have referral fee minimums of $0.30, meaning this is the minimum you will pay in referral fees per sale.

FBA Fees

Finally, FBA (Fulfillment By Amazon) fees must also be paid. This cost covers packing your orders, shipping and handling, customer service, and product returns. These fees will fluctuate depending on your product’s weights and dimensions. On the lower end, FBA fees could be around $4, while very large, heavy items can incur fees up to $160. 

What Are The Requirements For Selling On Amazon? 

When selling products on Amazon, there are certain documents you need to be accepted as a seller. Knowing the requirements and documentation needed to register is an important part of the process. Before jumping in, let’s review the eligibility types of documentation you’ll need. 

Documentation Needed for Setup 

There are several documents that you’ll need to provide in order to complete the setup of your Seller account. These include tax documents, identity verification documents, and business information documents. 

  • Tax Documents: If you plan to sell your own product, you’ll need to provide documents that verify your organization’s Tax Identification Number (TIN). These may include a copy of your resale certificate, sales tax exemption certificate, or other documents issued by the tax authority in your country or region of residence. 
  • Identity Verification: You will also need to provide government-issued identity verification documents such as a passport or driver’s license for yourself and any other authorized users of the account. 
  • Business Information: In addition to these documents, Amazon will require information about your business such as your business name and website address, contact information, and a brief description of the products you plan to sell. 

Documentation Needed for Activation 

Once all the required Setup Documentation is submitted, your Amazon Seller account will be ready for activation which requires additional document submission. You’ll need to provide the following: 

  • Tax Identification Number: You’ll have to provide Amazon with a Tax Identification Number (TIN), which may be either a Social Security number (for individuals) or an Employer Identification Number (for businesses). This will be used for reporting purposes by Amazon and must match what is provided on any tax forms already submitted by you or your company. 
  • Bank Account Details: Amazon will also require bank account details so they can deposit any money earned from sales into this account when requested by you. This bank account must belong either to you or your company and should not be co-owned with another person unless stated otherwise in their Terms & Conditions Agreement.  
  • Payment Method: Finally, you’ll need to select a payment method for accepting payments when customers purchase items from your store on Amazon’s Marketplace platform. This payment method could be PayPal, direct deposit into your bank account, or credit card depending on what works best for you or your company’s needs. 

Is Selling On Amazon The Right Choice For You? 

Benefits

Selling on Amazon offers many benefits to sellers. One of the main advantages is access to millions of customers across the globe. This global exposure could result in increased sales and profits. Additionally, it’s relatively affordable to start selling on Amazon compared to other platforms. Amazon also makes selling your products easier and less time-consuming as they’ll handle all the shipping and customer service for you.

Risks

Although selling on Amazon has many advantages, there are some potential risks associated with it as well. The primary risk is marketplace competition. As more people become sellers on the platform, there’s a higher likelihood of someone else selling the same item as you, which makes it difficult to remain competitive in terms of pricing and exposure. Additionally, there’s a chance your reputation could be damaged if customers leave negative reviews.

With all this information in mind, it is important to research thoroughly before starting your journey into selling on Amazon and create a comprehensive strategy in order to ensure success in the long run and mitigate any potential risks associated with selling on this platform.

Learn more about MaverickX.

Register with us

Send a message

Terms & Conditions

Standard Terms & Conditions - MaverickX.io

General Service Agreements. MaverickX.io and Client will enter into written agreements for membership in the MaverickX Network and MaverickX services. Cancellation/Termination. Membership and MaverickX services may be cancelled and/or terminated at any time by either party for any reason upon thirty (30) days written notice. MaverickX membership and services automatically terminate if the other Party: a) becomes insolvent; b) files a petition in bankruptcy; c) makes an assignment for the benefit of its creditors; or (d) liquidates, dissolves, or ceases operations.           Member Benefits. As a member in the MaverickX Network, Client is eligible to receive additional MaverickX services and benefits offered by MaverickX.io from time to time. Client Data.  As a member of the MaverickX Network, Client will provide MaverickX.io requested by MaverickX.io pursuant to Client’s service agreement with MaverickX.io, access and use of certain Client data solely and exclusively within the scope and purposes of providing the MaverickX Services. Client grants MaverickX.io a non-exclusive and limited license to access and use such data solely and exclusively within the scope of the MaverickX service and Client’s service agreement. Dashboard. MaverickX.io will provide Client access and use of the MaverickX Dashboard under license as outlined in Client’s service agreement. All service reporting, analytical summaries and performance indexes will be provided to Client via the MaverickX Dashboard, unless otherwise provided by MaverickX.io. Dashboard Restrictions.  Client will not share with any third-party individual, group, affiliate, entity, business, or potential business or personal relationship, in any manner, fashion, form or media, the existence or scope of the MaverickX Dashboard or any information or data related to or derived from the MaverickX Dashboard. Service Fees.  Client will pay MaverickX.io all monthly service fee for the MaverickX services, as outlined in Client’s service agreements. Invoicing. Unless otherwise specified in Client’s service agreement with MaverickX.io, MaverickX.io will submit written monthly invoices to Client, via email or other means as determined by MaverickX.io, for all MaverickX services rendered during the previous month. Intellectual Property. AS between Client and MaverickX.io, each party owns and retains all right, title, and interest in and to their respective intellectual property, including all patents, copyrights, trademarks and proprietary materials and information. Non-Exclusivity. Nothing in the membership or agreement for MaverickX services will be deemed to limit or restrict MaverickX.io from entering into any agreements similar hereto with any other outside third parties. Client acknowledges and agrees that (i) MaverickX.io has and will continue to provide similar services to third parties; (ii) MaverickX.io can engage in transactions with third parties, or undertake its own activities, whether or not similar to the services and transactions provided or contemplated by the Agreement or which may be competitive with Client’s business or Client Products; (iii) MaverickX.io has no obligation to inform Client of its relationship with such third parties or the nature of the services provided to such third parties; (iv) MaverickX.io has no obligation to limit or modify its relationship with such third parties or the nature of the services provided to such third parties; and (v) the relationships with and services provided to such third parties do not interfere with Client’s relationship with MaverickX.io or the performance of the MaverickX service or create a conflict of interest between Client and MaverickX.io. Governing Law & Jurisdiction.  Client’s service agreement with MaverickX.io will be governed and construed in accordance with the laws of the State of Ohio, without giving effect to conflicts of law principles thereof. Client agrees and irrevocably consents to the exclusive jurisdiction of any state or federal court located in Columbus, Ohio in any dispute related to or arising out of Client’s service agreement with MaverickX.io. Force Majeure.  Neither party will be liable for any failure to perform any obligation hereunder, or from any delay in the performance thereof, due to causes beyond its reasonable control, including industrial disputes of whatever nature, acts of God, public enemy, acts of government, fire or other casualty provided that the either party affected by such event will promptly begin or resume performance, as soon as practical after the event has been abated.